Passing It On: An Estate
Planning Resource for Farmers
and Ranchers
Cole Ehmke
Extension Specialist
Department of Agricultural and Applied Economics
17 April 2007
Phoenix, AZ
National Extension
Risk Management Conference
Observed Need
Development objectives:
• show how to deal with some of the difficult
personal issues
• provide exercises and checksheets to set
goals and move forward
• provide background on the primary tools
used to implement a plan
• list Wyoming resources to assist in the
process.
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Development
Development Team (organization and content)
– Lucy Pauley and Carolyn Paseneaux, Wyoming
Department of Agriculture Mediation
– Alan Schroeder and Cole Ehmke, University of
Wyoming Extension
Partners (content)
– Legal and content experts, estate planning advisors,
insurance representatives
– Initially potential partners were indifferent; now
enthusiastic
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Estate Planning Process
1. Discover Expectations: communicate
goals, issues, concerns, etc. of all parties
2. Take Stock: Personal net worth statement
3. Examine Options/Tools
4. Agree to the Plan
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Baseline Components
• Someone has to initiate the dialogue
• Develop shared goals
– Outline your interest first, then share (don’t
assume)
– Be fair, inclusive and over-communicate
• Centralize information
• Assess tools and visit professionals (after
goals are set)
• Get it done (agree to the plan, and
implement it)
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Content
Chapter 1 Introduction
Chapter 2 Success Stories
Chapter 3 Establishing an Estate Plan
Chapter 4 Developing Common Goals
Chapter 5 Taking Stock of the Estate
Chapter 6 Succession Planning
Chapter 7 Tools
Chapter 8 Coming to an Agreement
Chapter 9 Resources
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Chapter 1
Introduction by Lucy Pauley
- Introduction to estate planning
- Common problems
- Project objectives
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Estate Planning
Defining the Term
It is the process of accumulating, preserving
and distributing assets to achieve the
financial goals of people during their
lifetimes, and to provide for their heirs
according to the estate owner’s wishes at
death.
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Chapter 2
Success Stories
• Story 1: Harding & Kirkbride Livestock Co.,
Meriden, WY
• Story 2: The Sims Ranch, McFadden, WY
• Story 3: Johnsen Farm, New Jersey
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Chapter 3
Establishing an Estate Plan for Your
Family’s Farm or Ranch Business –
Initiating the Dialogue by Alan Schroeder
• Material is mediation based
• Addresses why these conversations are
difficult
• Guides the initiator and provides process
and three approaches
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Chapter 4
Developing Common Goals by Cole Ehmke
• Emphasizes the importance of shared
goals
– Outline your interest first, then share (don’t
assume)
• Lists typical goals and provides
worksheets to rank
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Chapter 5
Taking Stock of the Estate by Cole Ehmke
Addresses three parts of taking stock of an
estate:
– Identify assets and liabilities in the estate
– Locate papers and documentation
– Establish a personal net worth statement
Excel spreadsheet is available (online)
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Chapter 6
Succession Planning
• Transfer of management (and choosing a
successor)
• Transfer of ownership
• Transfer of labor
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Chapter 7
Tools by assorted professionals
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Wills
Probate
What Everyone Should Know About Trusts
Estate Planning and Life Insurance
Gifting
Effects of Title Ownership of Property
Annuities
The Federal Estate Tax
Conservation Easements
Advanced Health Care Directives
Glossary
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Chapter 8
Coming to a Good Agreement
Regarding an Estate Plan for your
Family’s Farm or Ranch by Alan
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Schroeder
Mediation based
Guides how to conduct a family meeting(s)
on the final estate plan
Provides three possible approaches
Outlines a specific negotiation technique
which addresses some of the concerns
raised by other methods.
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Chapter 9
Resources
• Lists professional organizations (specific to
Wyoming)
• Lists other estate planning publications (both
general and specific to agriculture)
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Distribution
• Hard Copy (mail order for $10)
• Electronic (free):
http://ces.uwyo.edu/passingiton.asp
• Workshops
– 10 winter workshops; reached 142
farmers/ranchers
– 2 hours each, with legal professional
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Future Work
Expand content
– Non titled (personal) property distribution
– Philanthropy
– Funeral planning
– Retirement planning
Assess success
– Survey of users
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For additional information on Passing It On,
personal resource management and
agricultural diversification, contact
Cole Ehmke
Department of Agricultural and Applied Economics
University of Wyoming, Laramie, WY
(307) 766-3782
cehmke@uwyo.edu
ces.uwyo.edu/passingiton.asp
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